BJ's Wholesale (BJ) PT Lowered to $90 at BofA Securities
BofA Securities analyst Robert Ohmes lowered the price target on BJ's Wholesale (NYSE: BJ) to $90.00 (from $95.00) while maintaining a Buy rating.
The analyst comments "BJ’s reported F2Q adj. EPS of $1.09 (vs. our $1.01 est.) driven by strength in membership, comparable sales and a lower tax rate. Comparable sales (ex-gas) increased 2.4% (vs. our +1% est.) driven by 4pts traffic growth and ~3% comp growth in grocery, perishables & sundries, fueled by units. General merchandise (GM) comps were up +1% in F2Q (vs. slightly negative in F1Q) led by an improvement in seasonal GM comps given better weather & assortment. Merchandise gross margin (ex-gas) increased 10bps y/y, slightly lower than expected, given improved inventory cost management and LT investments."